Reason for stop loss if you know price will return after some time?

[shinde]

Using stop loss is always best as it reduces the risks and losses for a trader.Even if the prices return back there are also chances that prices can go beyond the levels of stop loss and the trader will suffer less loss.

[anubhavsingh]

For small accounts stop loss is much important. It prevents you from margin call and bankruptcy. But if you a big account then you can go without stop loss. The only purpose of stop loss is to prevent from big loss. It also happens many times that the price just touched the SL but you know SL aalso have many advantages as i mentioned.

mere khayal se chote aur bade dono accounts me stop loss bahut zaruri hota hai
lekin stop loss set karne ke liye poore analysis ki zarurat hoti hai..aise hi kisi bhi value pe set nahi kiya ja sakta stop loss
agar poori tarah support aur resistence dekh ke ke stop los lagaya jaye to bahut kaam aa sakta hai ye tradres kel iye

[ali1011]

Stoop loss is very essential part of trading and like equal to insurance system but in this way you can save your balance in wrong situation its very good and safe thing its saves you investment for you feature trading.

[dmambi]

If we really know that the price will come back soon, then there is no need to put stop loss, but the problem is we never know when exactly the price will come back , so we need to put the stop loss to kill the uncertainty.

[realfun07]

although you know how to trade well with your strategies but one thing is also well know that you do not know when the price will come back because if one trend strated then it is difficult to stop it so better to use stop loss for getting professional pips.

Also we do not know that if the price will come back or not or even go further in reverse direction.This is the reason we put stop loss to our trades as markets are unpredictable and risky.

[yogesh]

although you know how to trade well with your strategies but one thing is also well know that you do not know when the price will come back because if one trend strated then it is difficult to stop it so better to use stop loss for getting professional pips.

You said it right some time it can take too long and so you shall not be able to trade during that period because your capital is locked in those trades. Also when a support is broken it usually go further down sharply so by triggering stop loss we have opportunity to buy at further lower level so averaging our price to lower one.

[atif58]

For small accounts stop loss is much important. It prevents you from margin call and bankruptcy. But if you a big account then you can go without stop loss. The only purpose of stop loss is to prevent from big loss. It also happens many times that the price just touched the SL but you know SL aalso have many advantages as i mentioned.

[dmambi]

You have good point friend, so that main reason that we have to trigger stop loss is the high leverage we use. It simply means that those going with lower leverage no need to bother about stop loss.

Leverage is not playing much role in deciding your stop loss, it is the available margin and the lot size you have selected are the one who are really need to be considered before setting a stop loss.

[MichealFlether214]

yes this is right. I trade with low leverage, and most of the times, it does not just effect my overall outcome that whether I have placed a stop loss or not.

[yogesh]

yes. that's true that price will return back my position.. but what if the price will give a 200 pips movement against me then return back... it will simple get me out of the market. so its better to use stop loss or at least some kind of protection for this kind of situation. and another thing is we should learn how to hold our winnings by minimizing the losses . if we can stay in the market then we will make profit.

You have good point friend, so that main reason that we have to trigger stop loss is the high leverage we use. It simply means that those going with lower leverage no need to bother about stop loss.